Delaware-based Marlette Funding (with actual corporate offices in Delaware, not just an LLC filing) has moved to lay off one fifth of its staff. While the headline might trigger alarm bells, it’s really a decision to streamline operations, and move away from development of a credit card division and white label product, and we think that’s positive. Sometimes, as you grow, you’ve got to really refine and stay in your lane. The platform’s loans have performed better than other competitors, due in part to the fact that they outsource number of labor-intensive functions.
According to their website: “Marlette Funding is a next generation financial services company that simplifies how consumers borrow money. Our online personal loan platform enables qualified applicants to see loan offers in as little as 3 seconds and receive funds as soon as the next day. The first lending product on this platform, the Best Egg® unsecured personal loan, has originated over $3 Billion since launching in March 2014.”
“Online lender Marlette Funding LLC is cutting around one-fifth of its workforce after the company decided to mothball plans to branch out into businesses beyond making unsecured personal loans, according to people familiar with the matter.
While smaller than better-known rivals like LendingClub Corp., Marlette expanded more quickly in recent years. The Delaware-based company said earlier this month that it extended more than $3 billion in loans under its Best Egg brand in its first three years in business, a milestone that took LendingClub around twice as long to reach. Marlette’s 2016 loan volume was $1.1 billion compared with $8.7 billion for LendingClub.
Marlette CEO Jeffrey Meiler said in a statement that the company “continues to deliver industry best credit results and took steps [in the first quarter] to streamline business as we close in on profitability.”
Marlette relies more on outside vendors than other financial-technology firms to handle labor-intensive tasks like verifying borrowers’ information and customer service, so only about 20 jobs were cut…”
Read Full Article at WSJ.com
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